Loss Mitigation Loan definition

Loss Mitigation Loan. A Loan purchased by the Issuer in connection with the workout, restructuring or a related scheme to mitigate losses with respect to a related Collateral Obligation, which Loan, in the Collateral Manager’s judgment exercised in accordance with the Collateral Management Agreement, is expected to result in an increased recovery value of the related Collateral Obligation; provided that, on any Business Day as of which such Loss Mitigation Loan satisfies all of the criteria for acquisition by the Issuer (including, for the avoidance of doubt, the definition of “Eligibility Criteria,” without giving effect to any applicable carveouts for Loss Mitigation Loans set forth therein), the Collateral Manager may designate (by written notice to the Issuer and the Collateral Administrator) such Loss Mitigation Loan as a “Collateral Obligation”. For the avoidance of doubt, any Loss Mitigation Loan designated as a Collateral Obligation in accordance with the terms of this definition shall constitute a Collateral Obligation (and not a Loss Mitigation Loan), in each case, following such designation.

Loss Mitigation Loan. A Loan purchased by the Issuer in connection with the workout, restructuring or a related scheme to mitigate losses with respect to a related Collateral Obligation, which Loan, in the Collateral Manager's judgment exercised in accordance with the Collateral Management Agreement, is expected to result in an increased recovery value of the related Collateral Obligation; provided that, on any Business Day as of which such Loss Mitigation Loan satisfies all of the criteria for acquisition by the Issuer (including, for the avoidance of doubt, the definition of "Collateral Obligation," without giving effect to any applicable carveouts for Loss Mitigation Loans set forth therein), the Collateral Manager may designate (by written notice to the Issuer and the Collateral Administrator) such Loss Mitigation Loan as a "Collateral Obligation". For the avoidance of doubt, any Loss Mitigation Loan designated as a Collateral Obligation in accordance with the terms of this definition shall constitute a Collateral Obligation (and not a Loss Mitigation Loan), in each case, following such designation. "Loss Mitigation Loan Designation Condition": A condition that will be satisfied in connection with designating amounts received in respect of a Loss Mitigation Loan as Interest Proceeds if, immediately following such designation, any of the following conditions are satisfied: (a) the sum of (1) the Collateral Principal Amount (excluding any Defaulted Obligations) plus (2) the S&P Collateral Value of all Defaulted Obligations equals or exceeds the Reinvestment Target Par Balance; (b) the sum of the aggregate of all recoveries in respect of such Loss Mitigation Loan equals or exceeds the outstanding principal balance of such Loss Mitigation Loan at the time of its acquisition;

Loss Mitigation Loan means a loan (including any Loss Mitigation Qualified Loan) purchased by the Issuer in connection with the workout, restructuring or a related scheme to mitigate losses with respect to a related Defaulted Obligation or a related Credit Risk Obligation, as applicable, which loan, (i) in the Collateral Manager's reasonable judgment exercised in accordance with the Collateral Management Agreement, is necessary to collect an increased recovery value of the related Defaulted Obligation or the related Credit Risk Obligation, as applicable, and (ii) is not a Bond or any other security; provided that, on any Business Day as of which such Loss Mitigation Loan satisfies all of the criteria for acquisition as a Collateral Obligation by the Issuer (including, for the avoidance of doubt, the definition of "Collateral Obligation," without giving effect to any applicable carve-outs utilized for such Loss

Examples of Loss Mitigation Loan in a sentence

• The Collateral Manager may direct the Collateral Trustee to sell any Credit Risk Obligation or Loss Mitigation Loan at any time without restriction.

• Any such purchase of a Loss Mitigation Loan will not be required to satisfy any of the Investment Criteria.

• On any Business Day that a Loss Mitigation Loan or Extended Loss Mitigation Loan satisfies the Restructured Obligation Criteria, the Collateral Manager may designate (by written notice to the Issuer and the Collateral Administrator) such Loss Mitigation Loan or Extended Loss Mitigation Loan as a Collateral Obligation.

• A Loss Mitigation Loan that (A) meets the requirements of the definition of Collateral Obligation (other than clauses (ii), (iv), (v), (vi), (vii), (ix), (x), (xiv), (xv), (xx) and (xxiii) thereof) as determined by the Collateral Manager, (B) ranks in right of payment no more junior than the related Defaulted Obligation or Credit Risk Obligation, and (C) is issued by the same (or an affiliated or related) Obligor as the Obligor on the related Defaulted Obligation or Credit Risk Obligation.

• A Loss Mitigation Loan which shall not be required to satisfy the Eligibility Criteria upon acquisition, but will only be designated as a Collateral Debt Obligation by the Collateral Manager in accordance with the terms specified in the definition of “Loss Mitigation Loan”.

• The purchase of any Loss Mitigation Loan will not be required to satisfy any of the Eligibility Criteria, but, as of the relevant date of determination, (x) the aggregate principal balance of Loss Mitigation Loans shall not constitute more than 5.0 per cent.

• The purchase of any Loss Mitigation Loan will not be required to satisfy any of the Eligibility Criteria or to be tested against the Reinvestment Criteria but shall be required to satisfy the Loss Mitigation Loan Criteria and the Loss Mitigation Loan Profile Tests.

• For the avoidance of doubt, any Loss Mitigation Loan (including any Loss Mitigation Qualified Loan) designated as a Collateral Obligation by the Collateral Manager in accordance with the terms specified in the definition of "Loss Mitigation Loan" shall constitute a Collateral Obligation (and not a Loss Mitigation Loan or a Loss Mitigation Qualified Loan) following such designation.

• Loss Mitigation Loans shall not be required to satisfy the Eligibility Criteria or the Reinvestment Criteria upon acquisition, but will only be designated as a Collateral Obligation by the Collateral Manager in accordance with the terms specified in the definition of "Loss Mitigation Loan".

• The Seller also shall deliver to the Purchaser updated Loss Mitigation Information within [***] days after the applicable Transfer Date, and the Seller shall promptly deliver to the Purchaser any executed Loss Mitigation Loan Documents received by the Seller after the applicable Transfer Date.

More Definitions of Loss Mitigation Loan

Loss Mitigation Loan. Any loan for which a Mortgagor has requested an application for loss mitigation including, but not limited to a trial or permanent modification, a forbearance, deferral, waiver, short sale, deed-in-lieu or other loss mitigation, foreclosure alternative or foreclosure prevention effort or process, including any federal, state, or local program or proprietary program. Losses: Any and all direct, actual and out-of-pocket costs or expenses, losses, damages, deficiencies, claims, including costs of investigation, attorneys’ fees and disbursements, the amounts of denied insurance or guaranty coverage (to the extent Purchaser has to pay amounts in lieu thereof), but, excluding (i) any amounts attributable to or arising from overhead allocations, general or administrative costs and expenses, or any cost for the time of any Party’s employees, (ii) consequential losses or damages consisting of speculative lost profits, lost investment or business opportunity, damage to reputation or operating losses, (iii) punitive or treble damages; (iv) ordinary deductions from the calculation of insurance or guaranty benefits by an Insurer related to the servicing of the Mortgage Loans after the Sale Date assuming the Seller complied with Applicable Requirements in servicing the Mortgage Loans prior to the Sale Date, and (v) prepayment interest shortfalls payable to securities holders for the accrual on interest on mortgage-backed securities in excess of the amount payable by the Mortgagor upon the full prepayment of a Mortgage Loan; provided, however, that the exclusions set forth in clauses (ii) and (iii) above do not apply if and to the extent any such amounts are actually incurred in payment to a third party or government entity.

Loss Mitigation Loan means a loan (or Bond or any other security permitted by applicable law) purchased by the Issuer in connection with the workout, restructuring or a related scheme to mitigate losses with respect to a related Defaulted Obligation or a related Credit Risk Obligation, as applicable, which, in the Collateral Manager's judgment exercised in accordance with the Collateral Management Agreement, is necessary to collect an increased recovery value of the related Defaulted Obligation or the related Credit Risk Obligation, as applicable; provided that the Investment Guidelines shall at all times apply with respect to Loss Mitigation Loans; provided further that the Aggregate Principal Amount of Loss Mitigation Loans purchased by the Issuer following the Closing Date may not, in the aggregate, exceed 10.0% of the Target Par Amount; provided further that, on any Business Day as of which such Loss Mitigation Loan satisfies all of the criteria for acquisition by the Issuer (including, for the avoidance of doubt, the definition of "Collateral Debt Obligation," without giving effect to any applicable carveouts for Loss Mitigation Loans set forth therein), the Collateral Manager may designate (by written notice to the Issuer and the Collateral Administrator) such Loss Mitigation Loan as a "Collateral Debt Obligation". For the avoidance of doubt, any Loss Mitigation Loan designated as a Collateral Debt Obligation in accordance with the terms of this definition shall constitute a Collateral Debt Obligation (and not a Loss Mitigation Loan), in each case, following such designation.

Loss Mitigation Loan means a loan or Bond or any other security permitted by applicable law purchased by the Issuer in connection with the workout, restructuring or a related scheme to mitigate losses with respect to a related Defaulted Obligation or a related Credit Risk Obligation, as applicable, which, in the Collateral Manager's judgment exercised in accordance with the Collateral Management Agreement, is necessary to collect an increased recovery value

Loss Mitigation Loan means a loan or Bond purchased by the Issuer in connection with the workout, restructuring or a related scheme to mitigate losses with respect to a related Defaulted Obligation or a related Credit Risk Obligation, as applicable, which loan, or Bond (i) in the Collateral Manager's judgment exercised in accordance with the Collateral Management Agreement, is necessary to collect an increased recovery value of the related Defaulted Obligation or the related Credit Risk Obligation, as applicable and (ii) is not an equity security; provided that, on any Business Day as of which such Loss Mitigation Loan satisfies the definition of Collateral Obligation, the Collateral Manager may designate (by written notice to the Issuer and the Collateral Administrator) such Loss Mitigation Loan as a "Collateral Obligation." For the avoidance of doubt, any Loss Mitigation Loan designated as a Collateral Obligation in accordance with the terms of this definition shall constitute a Collateral Obligation (and not a Loss Mitigation Loan) following such designation.